EX-12 2 bel-ex12_20141231x10k.htm EXHIBIT 12 BEL-EX12_2014.12.31-10K


EXHIBIT 12

BELMOND LTD. AND SUBSIDIARIES

Computation of Ratios of Earnings to Fixed Charges

 
 
Year ended December 31,
 
 
2014
 
2013
 
2012
 
2011
 
2010
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings available to cover fixed charges:
 
 
 
 
 
 
 
 
 
 
Add:
 
 
 
 
 
 
 
 
 
 
Earnings/(losses) from continuing operations before income taxes and earnings from unconsolidated companies
 
8,105

 
(14,992
)
 
8,101

 
(4,637
)
 
(11,250
)
Fixed charges
 
40,765

 
39,432

 
38,568

 
47,034

 
40,646

Amortization of capitalized interest
 
417

 
417

 
398

 
510

 
496

Distributed income of equity method investees
 
3,725

 
7,841

 
2,524

 
2,428

 
1,759

Less:
 

 
 
 
 
 
 
 
 
Interest capitalized
 
—

 
(1,088
)
 
(4,193
)
 
(863
)
 
(2,201
)
Earnings available to cover fixed charges
 
53,012

 
31,610

 
45,398

 
44,472

 
29,450

 
 

 
 
 
 
 
 
 
 
Fixed charges:
 

 
 
 
 
 
 
 
 
Interest expensed and capitalized (1)
 
32,846

 
28,217

 
29,737

 
36,571

 
32,609

Amortized premiums, discounts and capitalized expenses related to indebtedness
 
3,921

 
7,197

 
5,318

 
7,167

 
4,884

Estimate of interest in rent expense (2)
 
3,998

 
4,018

 
3,513

 
3,296

 
3,153

Total fixed charges
 
40,765

 
39,432

 
38,568

 
47,034

 
40,646

 
 

 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
1.3

 
N/A

 
1.2

 
N/A

 
N/A

 
 

 
 
 
 
 
 
 
 
Deficiency in earnings to cover fixed charges
 
—

 
7,822

 
—

 
2,562

 
11,196

 
 
 
 
 
 
 
 
 
 
 
(1) The interest included in fixed charges is interest on third party indebtedness. Interest expense accrued on uncertain tax positions is excluded from the calculation of earnings because that amount was presented as a component of income taxes.
(2) Historically, Belmond has been using one-third of rent expense as a reasonable estimate of the financing component of rent expense, since it is impracticable to determine the actual financing component of rent expense.